German ZEW improved after EU-US trade agreement, but outlook significantly less favorable than 6 months ago

German ZEW Economic Sentiment rose to -13.7 in August, up from -24.7, beat expectation of -20.1. Current Situation rose to 72.6, up from 72.4 and beat expectation of 72.3

Eurozone ZEW Economic Sentiment rose to -11.1, up from -18.7 and beat expectation of -16.4. Current Situation dropped to 30.0, down from 36.2.

ZEW President Professor Achim Wambach said in the statement that “the recent agreement in the trade dispute between the EU and the United States has led to a considerable rise in expectations for Germany and also, to a lesser degree, for the Eurozone. However, the economic outlook for Germany is now significantly less favourable than it was six months ago.”

Full release here.

Also released, Eurozone GDP grew 0.4% qoq in Q2, above expectation of 0.3% qoq. Industrial production dropped -0.7% mom in June, below expectation of -0.3% mom.